Essel Group

Besides raising funds through sale of stock-backed debt securities to mutual funds, some of the Essel Group companies have drawn loans from Yes Bank on the back of comfort letters or guarantees from promoters.

Zee Entertainment Enterprises had announced in November last year that its promoters, led by Subhash Chandra, planned to sell up to 50 per cent of their equity stake in the company to a strategic partner.

Some of the lenders, who have a pledge on the promoter family stock, had sold about 6.5 million shares in the Friday carnage. This prompted Chandra to issue an unprecedented open letter, apologising to the lenders and seeking their patience.